Changes

== Economy ==

== Economy ==

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $47,400. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in [[Europe]] and [[Japan]] in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II.  

The US has the largest and most technologically powerful economy in the world, with a very high GDP per capita of $64,759. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. American business firms enjoy greater flexibility than their counterparts in [[China]], [[Europe]], and [[Japan]] in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II, mostly due to the economic explosion of China.

The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Unfortunately, China remains both the banker and salesman to the United States' role as a buyer and debtor. This will not end well for the United States, Republican president or not. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March–April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Soaring oil prices between 2005 and the first half of 2008 threatened [[inflation]] and [[unemployment]], as higher gasoline prices ate into consumers' budgets. Imported oil accounts for about 60% of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable [[trade deficit]]s and [[budget deficit]]s, and stagnation of family income in the lower economic groups.  

The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Unfortunately, China remains both the banker and salesman to the United States' role as a buyer and debtor. This will not end well for the United States, Republican president or not. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March–April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Soaring oil prices between 2005 and the first half of 2008 threatened [[inflation]] and [[unemployment]], as higher gasoline prices ate into consumers' budgets. Imported oil accounts for about 60% of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable [[trade deficit]]s and [[budget deficit]]s, and stagnation of family income in the lower economic groups.